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Below the Perspective on performance of Gems & Jewellery Sector in 2025 by Mr. Colin Shah, MD, Kama Jewelry

“Internationally, the year 2025 has been quite a mixed-bag for the Indian Gems & Jewellery sector, especially influenced global economic headwinds and a rise in the price of precious metals. To add to it, the trade tariffs was another major shock of the sector. There was a panic-trade situation where the sector witnessed a spike in cross-border business for a couple of months, before going back to a dull momentum. Contrastingly, the domestic market performed very well throughout, with some negligible corrections here and there, as consumption gained strength on the backdrop of a robust economy, empowered purchasing ability, and the GST Bonanza right ahead of the festive season. It is safe to say that the vacuum created by international trade volatility was covered to a certain extent by domestic demand.

The reflection of a robust domestic economic activity can be seen in the real GPD growth – which has recorded six quarters high during H1FY26. This is a major indicator of strengthened consumption appetite of the Indian population and is expected to continue. This sentiment is here to stay and underlines a well-optimized growth for the domestic gems & jewellery sector, irrespective of the downtrend in the global markets.  Overall, we will see the gold prices further stride toward new record highs, but will remain a favourite investment and prestige purchase for the Indian population, keeping the sectoral growth trajectory upwards.”

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